Howden Joinery Group Plc's (LON:HWDN) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Howden Joinery Group will host its Annual General Meeting on 2nd of May
• CEO William Livingston's total compensation includes salary of UK£710.0k
• The overall pay is comparable to the industry average
• Howden Joinery Group's EPS grew by 23% over the past three years while total shareholder return over the past three years was 20%

CEO William Livingston has done a decent job of delivering relatively good performance at Howden Joinery Group Plc (LON:HWDN) recently. As shareholders go into the upcoming AGM on 2nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Howden Joinery Group

How Does Total Compensation For William Livingston Compare With Other Companies In The Industry?

Our data indicates that Howden Joinery Group Plc has a market capitalization of UK£4.8b, and total annual CEO compensation was reported as UK£2.5m for the year to December 2023. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£710k.

In comparison with other companies in the British Trade Distributors industry with market capitalizations ranging from UK£3.2b to UK£9.6b, the reported median CEO total compensation was UK£2.5m. From this we gather that William Livingston is paid around the median for CEOs in the industry. What's more, William Livingston holds UK£4.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	UK£710k	UK£670k	28%
Other	UK£1.8m	UK£1.9m	72%
Total Compensation	UK£2.5m	UK£2.6m	100%

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. In Howden Joinery Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Howden Joinery Group Plc's Growth

Howden Joinery Group Plc has seen its earnings per share (EPS) increase by 23% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Howden Joinery Group Plc Been A Good Investment?

With a total shareholder return of 20% over three years, Howden Joinery Group Plc shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Howden Joinery Group that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.